Genesy AI - The only all-in-one B2B Lead Generation software
Genesy AI - The only all-in-one B2B Lead Generation software
Analyzing Startups #1: Genesy AI. News on Securitize, Joppy, Laminar Pharma, Indigitall & Mapsi Photonics.
Welcome to another edition of How to land in Venture Capital: a weekly newsletter on the new ventures’ ecosystem.
My name is Conrad and I work as a Startup Analyst. I help founders and investors achieve their goals by connecting both parties to financing opportunities. Additionally, I love to provide mentorship to guide startups on how to secure funding.
If you want to chat, drop me an email at conrad.carbonell@iese.net
News on VC Investment Deals
Securitize, a fintech with presence in Spain, raised $47m in a Later Stage VC deal led by BlackRock. The funds will be used to accelerate its product development and partnerships across the financial services ecosystem.
Joppy, a developer of a tech recruitment platform, raised €270k in a Equity Crowdfunding round.
Laminar Pharma, a biopharmaceutical company focused on the discovery of new drugs, raised €7m from Dentol Capital.
GFAL, a blockchain-based gaming platform, raised $3.2m in a Seed round led by Supercell and Mitch Lasky. The funds will be used to accelerate its production plans.
Indigitall, a developer of a digital and communication platform, raised €6m in a Series A round led by Data Point Capital.
Mapsi Photonics, a developer of silicon technology designed for photonic applications, raised €1.5m in an Early Stage round led by Bullnet Capital. The funds will be used to industrialize their products on a large scale.
Today’s Company: Genesy AI
Genesy AI combines B2B data aggregation with outreach automation, offering an end-to-end solution for sales and prospecting teams. It stands as the only all-in-one B2B Lead Generation software in the market.
In simple terms, Genesy AI provides personalized data to companies aiming to sell their products. By automating lead acquisition, it allows sales teams to spend less time prospecting and more time selling.
Team
Genesy AI boasts a team of 9 employees, divided into two parts: tech and business-oriented. The co-founders, Kai (CEO) and Jaume (CTO), bring complementary expertise to the table.
Kai: ex-BCG and ex-Agicap (a B2B SaaS startup), addresses a problem he encountered during his sales journey at Agicap.
Jaume: With over 5 years of experience at tech giants like Skyscanner and New Relic, he contributes valuable insights in the SaaS sector.
Market Opportunity
Consider hw many companies need to sell their products not only in Spain but also across Europe and globally. Genesy AI initially targets the B2B sector in Spain, which is valued at US$28.87 billion in 2024, according to Statista.com.
Problem
Manual process and lack of personalization:
Companies currently handle the sales process manually. Salespeople search for decision-makers within organizations and strive to sell their products.
During this process, sales reps also gather information about these individuals and identify relevant details for effective sales.
Solution
Genesy AI tackles this challenge in two phases:
Automating Decision Maker Identification and Data Enrichment:
The platform automates the discovery of decision-makers within companies while filtering the people searched, and then it enriches this data by providing specific information that salespeople can leverage during the sales process.
Automated Sales Campaigns with a Personal Touch:
Genesy AI offers a dedicated space for sales reps to automate their campaigns, and by utilizing AI, it ensures a warmer and more personalized approach to selling, avoiding spam interactions.
Customer and Business Model
The scalability in the B2B SaaS sector is just immense. Let’s take a look at the Quality of Revenue according to Nauta Capital:
We observe that the most valuable type of product or service a company can offer is a SaaS (Software as a Service) with a recurring contract, typically on a monthly basis. Genesy AI aligns with this valuable model by operating as a B2B SaaS company. Now, let’s delve into an analysis of the GTM, feasibility, scalability and possible risks:
Go-To-Market Strategy:
Targeted Outreach: Focusing on industries with data-intensive sales processes.
Demo-Driven Approach: Offering demos to potential clients showcases the platform’s capabilities.
This is often the way a B2B company works: there is a marketing and there is sales. For a B2B SaaS, such as Salesforce or Genesy AI, the allocation of the budget should be in sales efforts (vast majority if not the 100%). Conversely, for B2C companies, the primary focus lies in marketing strategies (e.g. Vicio)
Feasibility and Scalability:
Feasibility: The product is alive and given the demand for efficient B2B sales, Genesy AI addresses a critical need.
Scalability: With robust infrastructure, it can scale significantly.
Defensibility:
Barriers to Entry: High-quality data sources and AI algorithms are their main entry barriers.
Network Effects: As more users adopt Genesy AI, its value increases.
Competition
While there isn’t an all-in-one solution for this B2B sales challenge, Genesy AI does have direct competitors that address certain aspects of these issues:
LinkedIn Sales Navigator: A powerful tool for B2B sales professionals, providing lead discovery, outreach automation, and personalized engagement.
ZoomInfo: Offers comprehensive B2B contact data, company information, and lead generation capabilities.
Clearbit: Known for its data enrichment services, Clearbit enhances lead lists with accurate contact details.
Traction/Metrics
With over 6 months of life and 4-months since their €450k capital raised, they have achieved over €160k ARR.
Should we invest in Genesy AI?
Yes, because:
Innovative Solution: Genesy AI offers a unique blend of B2B data aggregation, lead generation, and outreach automation. Its holistic approach streamlines the sales process, saving time and resources for businesses.
Market Demand: The B2B sales landscape is ripe for disruption. Companies actively seek efficient ways to acquire leads and engage with decision-makers. Genesy AI addresses this pain point effectively.
Team: Co-founders Kai and Jaume bring complementary expertise from their backgrounds at BCG, Agicap, Skyscanner, and New Relic.
Quality of Revenue and Scalability: As a B2B SaaS company, Genesy AI aligns with the most valuable revenue model. Recurring contracts provide stability and growth potential, and as more companies adopt the platform, network effects come into play.
Traction: They already achieved momentum, and the networking effects are starting to have an effect.
No, because:
Competition: While Genesy AI has a unique offering, it faces competition from established players like LinkedIn Sales Navigator, ZoomInfo, and Clearbit. Also, being a really good market to enter, other big players can put their efforts to battle Genesy AI.
Execution Risk: Like any startup, Genesy AI faces execution risks. Ensuring successful product development, market penetration, and customer adoption is crucial.
Regulatory Challenges: Changes in data privacy regulations or industry standards could impact Genesy AI’s operations.
Disclaimer: the information provided is for informational purposes only and does not constitute investment advice. I encourage readers to conduct their own research and due diligence before making any investment decisions.